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Fun related anecdote: I used to be involved with doing data analysis of rogue traders in financial services and was involved in discovering and investigating se
by seanhunter 4y ago
Fun related anecdote: I used to be involved with doing data analysis of rogue traders in financial services and was involved in discovering and investigating several of these incidents.
In every case that I was personally involved in uncovering/investigating, suspicions were initially raised when the employee went on compulsory block leave.
- nonethewiser 4y agoDo you have any more details/stories you could share on that? Sounds fascinating. What clues emerged when one of these employees left?
- seanhunter 4y agoNot that much detail I can share publicly about detection methods etc although some of it is public because I have patents. The reason block leave is important is that some of the coverup behaviour has ponzi-like characteristics. So say you have a hole in one account because you’ve lost a lot of money. You find a way to cover that up by booking fake trades say. Well trades have a settlement and some gnome in the back office is going to contact the counterparty on the fake trade when the trade fails to settle and your fraud will be discovered so you have to cover that up before the trade settles. So maybe you move some money from another account (by booking a trade) and cancel your first fake trade, then you need to book a fake trade in your second account which you will then need to cancel and cover hp in the same way. Basically the perpetrator often ends up on the coverup merry go round which falls apart if the take time away.